Whether its whole life, universal life, or variable life, when you pay your premiums, your premiums are being paid for two things: 1) Term insurance and 2) Cash value.
At the beginning, most of your premiums are paid toward the cash value. As you get older, term insurance gets more expensive, so less of your premiums goes toward the cash value.
So the notion that says cash value life insurance isn't Term insurance is not true. Both provide coverage to age 95 or 100. But cash value policies has term insurance premiums that goes up every year, even though premiums as a whole may remain level. But buying term insurance by itself remains level for awhile and only go up when you renew it.
If that's now how cash value work, then what do you make of it?
2007-01-15
16:50:00
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7 answers
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asked by
Anonymous
in
Insurance